Colombia's First Commercial Bank to Pilot Crypto Services
Banco de Bogotá will use the test to explore business models and risks around crypto assets.
A Colombian commercial bank established in 1870 is to trial cryptocurrency services through a sandbox project set up by the country’s financial regulator.
- Banco de Bogotá said Monday the pilot program begins this month and will allow the bank to explore business models and risks associated with the handling of crypto assets, according to a Portafolio report.
- The sandbox from the Financial Superintendence of Colombia is aimed to provide a "joint test space between the digital ecosystem and the National Government in terms of crypto assets," the news source said.
- The bank will select a limited group of clients for the pilot, who will be given the option to make cryptocurrency deposits and withdrawals using Banco de Bogotá's mobile and virtual banking channels.
- As reported by CoinDesk, Colombia saw major growth in cryptocurrency use as a store of wealth as well as for transactional purposes in 2020.
- Peer-to-peer crypto marketplace LocalBitcoins said Colombia accounted for 11.3% of its global volume in 2020, making it one of the firm’s “main markets” alongside Russia and Venezuela.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.